By many measures, 2013 is shaping up to be the best year for initial
public offerings (IPOs) since 2007. The volume of new offerings has
surged, and hot new issues such as FireEye (NASDAQ: FEYE), Rally
Software Development (NYSE: RALY) and Epizyme (NASDAQ: EPZM) have
already bagged triple-digit gains. A hotly anticipated IPO from Twitter
is merely icing on the cake.
Yet amid the good news, some IPOs
have been duds. Companies with short track records or an open-ended path
to operating losses have been tossed in the IPO dust bin. But in the
rubble, you will find some deep value plays. And building products firm
Ply Gem Holdings (NYSE: PGEM) is one of them.
The recent IPO has traded down, but now appears to hold considerable upside.
When
it comes to recent IPOs, it's often wise to steer clear until 180 days
have passed. That's when insiders are free to sell shares as the
"lock-up expiration" periods ends. Yet, in the case of PGEM, insiders
are unlikely to head for the exits.
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